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Gold rises in Tokyo,

down in Hong Kong

TOKYO: Yen-denominated gold futures ended slightly higher, but off early highs, reflecting the yen's weaker tone against the dollar, traders said.

Prices ranged from six to 12 yen per gram higher, with benchmark August ending up 10 at 1,205.

"Even after prices broke above 1,200 yen, not much selling was seen, due to the view that the yen will slide further," a trader said. There was little reaction from today's media reports that authorities had decided to suspend some operations of credit union Kizu Shinyo Kumiai, but the market will watch for any reaction in currency markets overseas, they said.

Spot gold was quoted at $382.15/382.45 per ounce at the Tokyo close, against $382.20/382.70 in New York on Tuesday.

Silver futures were mostly weaker on private investors' profit-taking in tandem with losses in New York on Tuesday.

Overseas selling pushed spot silver down to $5.4550/5.4700 per ounce at the Tokyo close, against $5.5455 in New York.

Spot silver is likely to test $5.40 support levels on long liquidation, as fears about tight supply trends have eased significantly, traders said.

Silver futures ranged from 4.9 yen per 10 grams lower to 0.3 higher. Benchmark August closed down 4.9 at 169.2. Prices ranged from five yen per gram lower to seven higher, with bellwether August ending unchanged at 1,300.

HONG KONG: Gold closed slightly easier but off the day's low in quiet and narrow trading, dealers said.

Bullion touched a day's low of US$381.70/382.20 an ounce before closing at US$381.80/382.30, slightly below its opening and New York's Tuesday close of US$382.20/70.

"Bearish sentiment discouraged buying interest," said a senior dealer at a local investment house. "The market's still not really interested as the upside is being capped by selling at US$385-386. Gold is expected to continue softening and may test US$380 levels in the short-term." Local gold ended HK$12 lower at HK$3,525 a tael.